Recommendation 1

The Government has acknowledged that ethnicity pay gap reporting should be mandatory. Businesses are ready for Ministers to follow through on this commitment and bring forward legislation. We recognise that capturing and reporting ethnicity pay gap data is a more complex exercise than for gender, especially given disproportionate sample sizes of ethnicity across the UK. Solutions are available as long as employers are willing, and the purpose of the exercise is clear. Ethnicity pay gap reporting is not about producing a league table or punishing organisations who, due to geographic location, may not have access to the same talent pool. A pay gap is an indicator for employers to identify, understand and address trends in ethnic disparities across their own workforce.